HB 441 -- Taxation:  Local Sales Tax on Food

Co-Sponsors:  Lowe, Hilgemann

Under current law, certain food types are taxable for local sales
tax purposes.  This bill exempts these food types from all local
sales taxes imposed by political subdivisions.  This portion of
the bill will become effective on July 1, 2006.

The bill also reduces the maximum individual income tax deduction
for federal income taxes paid from $5,000 for a single taxpayer
and $10,000 for married taxpayers to $3,600 and $6,600,
respectively.  This portion of the bill will become effective on
January 1, 2005.

All revenue received from the reduction of the federal income tax
deduction on individuals will be deposited into an account to be
known as the Local Revenue Replacement Trust Fund.  Moneys in
this fund will be disbursed to political subdivisions in an
amount necessary to replace the lost revenues of the political
subdivisions as a result of the local sales tax exemption on the
sales of certain food types.  The fund and disbursement of the
moneys will be administered by the Department of Revenue.

The bill also keeps deposits to the Outstanding Schools Trust
Fund from being reduced.

The bill contains a referendum clause.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am